Staying ahead of the curve is essential for maximizing your returns in the fast-moving DeFi industry. As the leading vaulted infrastructure provider for DeFi, Spool has once again taken a significant leap forward by integrating seven new yield optimization strategies from Metamorpho.
This move expands Spool’s existing offerings, adding lucrative new strategies to the mix, and provides DeFI investors with unprecedented opportunities to diversify and optimize their portfolios.
Understanding Spool: The Vaulted Infrastructure Powering DeFi
Before diving into the new strategies, let’s frame what Spool brings to the DeFi potluck. Spool acts as a middleware layer in the industry. As a vaulted infrastructure provider, Spool empowers you to create custom yield-generating vaults that automatically allocate funds across various DeFi protocols based on predefined risk preferences and optimization strategies.
Spool’s infrastructure addresses several core challenges that impact broader DeFi use and adoption. Automating yield farming significantly reduces complexity, simplifying DeFi investing for everyone. What’s more, Spool’s robust risk management tools allow you to set your risk tolerance and allocate funds accordingly, making it easy and secure.
Gas efficiency is another massive benefit. Spool batches transactions to reduce fees, meaning you can participate in lucrative DeFi yield opportunities without needing to bring five-figure balances to the table. Finally, Spool is modular, flexible, and adaptable, meaning users always have access to the latest DeFi innovations and yield strategies, helping keep you at the forefront of DeFi.
Introducing Seven New Yield Optimization Strategies
Spool’s latest integration brings seven cutting-edge strategies from Metamorpho to its platform. With a combined Total Value Locked (TVL) of over $173 million, these strategies offer diverse opportunities across various assets, including USDC, ETH, WETH, USDT, and PYUSD.
Let’s examine each strategy in detail:
- Steakhouse USDC (TVL: $42M) This strategy employs a “dual engine” approach, optimizing yields by lending USDC against both blue-chip crypto and real-world asset (RWA) collateral markets. The strategy adapts to market conditions, ensuring maximum efficiency and returns.
- B.Protocol Flagship ETH (TVL: $40M) Curated by B.Protocol and Block Analitica, this vault focuses on optimizing risk-adjusted interest earned from blue-chip Liquid Staking Token (LST) and stablecoin collateral markets. It’s designed to provide steady returns while maintaining a conservative risk profile.
- Re7 WETH (TVL: $37M) Aiming to outperform traditional staked ETH yields, this strategy lends WETH against a diverse set of Liquid Staking and Liquid Restaking Token collateral markets. It capitalizes on the growing trend of liquid staking in the Ethereum ecosystem.
- Gauntlet WETH Prime (TVL: $17M) This vault optimizes risk-adjusted yield across liquid staking recursive yield markets. It leverages complex strategies to maximize returns in the ever-expanding world of liquid staking derivatives.
- Gauntlet USDC Prime (TVL: $16M) Focusing on large market cap and high liquidity collateral markets, this strategy aims to provide stable, optimized yields for USDC holders. It’s particularly suitable for investors seeking lower-risk exposure to DeFi yields.
- B.Protocol Flagship USDT (TVL: $9M) Another offering from B.Protocol and Block Analitica, this vault optimizes risk-adjusted interest from blue-chip collateral markets, specifically for USDT holders. It provides a valuable option for those looking to put their USDT to work in DeFi.
- Steakhouse PYUSD (TVL: $12M) Similar to its USDC counterpart, this strategy optimizes yields by lending PYUSD against blue-chip crypto and RWA collateral markets. It’s one of the first yield optimization strategies specifically designed for the newly launched PYUSD stablecoin.
Why Metamorpho?
Spool chose to integrate these strategies from Metamorpho for some specific reasons. Perhaps the most important is the lucrative yield offered by these strategies combined with the ironclad security and quality that the Metamorpho protocol brings to the market. We’ve worked with the Morpho team from the beginning, and their dedication to high-quality products is second to none.
But what even is Metamorpho?
An open-source protocol built on Morpho Blue offering ERC4626-compliant vaults that enable passive interest earning with automated risk management. These vaults provide curated risk profiles, allowing users to choose strategies that match their risk appetite — a substantial improvement over traditional lending pools’ one-size-fits-all approach.
One of Metamorpho’s key strengths is its automated risk management. Users benefit from sophisticated risk assessments without needing to make complex decisions themselves. This feature, combined with Metamorpho’s permissionless nature, allows for the creation of diverse strategies, enabling Spool to offer its users a wide range of options.
If these features sound like they fit perfectly with Spool, you’re right! Integrating Metamorpho strategies into Spool offers even greater security and yields without constant portfolio management. Investors can quickly and easily diversify their DeFi exposure and reduce overall portfolio risk while optimizing returns.
Morphing Your Portfolio Profitability
Introducing these seven Metamorpho strategies on Spool’s platform demonstrates the power of collaborative innovation in DeFi. It opens up new possibilities for enthusiasts and investors, whether capitalizing on ETH staking derivatives or exploring new assets like PYUSD.
DeFi will continue to evolve, and platforms like Spool and Metamorpho that can rapidly synergize to offer access to the latest innovations will play crucial roles in shaping the future of our industry. With these new strategies, Spool sets a pace for industry players, helping deliver more sophisticated, efficient, and accessible DeFi for all.
